Where is COLORTERM set?

   I think I've found why I've lost the ability to display UTF-8 in virtual
termials. The environment variable COLORTERM is set to xpm. When I manually
set COLORTERM=rxvt-unicode-256color it seems to resolve the problem. But, I
have not found where that environment variable is set. Please advise.

   On a related issue, what might be keeping my system from using
rxvt-unicode in /usr/share/terminfo/r/? If I do not have a rxvt-unicode
entry in /etc/termcap long lines scroll horizontally rather than wrap.
Grepping the running process list shows only termcap being used, not
terminfo.

   I'd like to clear up these two issues as quickly as I can.

TIA,

Rich